Intro to Business - Ch. 8 Quiz

Production refers to all the activities and processes used in making both tangible and intangible products.

• True

• False

Modular design, an operations process for manufacturing products, allows products to be repaired quickly, thus reducing the cost of labor.

• True

• False

Material-requirements planning can be, and often is, used in conjunction with just-in-time inventory management.

• True

• False

Service providers are generally more capital-intensive than manufacturers because of the high level of customization.

• True

• False

Service businesses cannot incorporate quality standards.

• True

• False

If an employee's primary function in an organization is transforming resources into goods and services, then he or she is involved in

• staffing

• financing

• customer relationship management

• operations management

Operations management has the primary responsibility of

• securing funds for the activities of an organization.

• conducting research on consumer behavior.

• creating goods and services that satisfy customers.

• developing only intangible products.

The transformation process in operations management

• is the conversion of resources such as labor, money, materials, and energy into goods, services, and ideas.

• is a process of replacing quality with productivity when manufacturing products.

• is efficient only when inputs are used in large quantities to produce small quantities of output.

• is associated with the marketing and selling of both inputs and outputs to customers.

Which statement accurately describes the difference between the terms "operations" and "production"?

• Operations is the first step in manufacturing, whereas production is the last step.

• Operations is simply an analysis of inputs and outputs, whereas production includes a wide range of organizational activities and situations.

• Operations includes processes used in the making of both tangible and intangible products, whereas production is related only to tangible products.

• Operations focuses solely on quality, whereas the primary focus of production is productivity.

Which of the following can be described as production?

• the services provided by a financial advisor

• the manufacturing of cars in an automobile company

• the surgeries conducted by a doctor

• the legal advice provided by a lawyer for a fee